What The Tips?!?

Receipt Decoder

Service Charge vs Tip: What You Should Know

Not every extra fee on a restaurant check means the same thing. Use this guide to spot hidden pressure and understand what you're paying for.

Service charge

A service charge is a fee the business adds to your bill. It may be a fixed percentage or fixed amount, and policies can vary by restaurant.

Some restaurants distribute this fee to staff, while others may use portions for broader operating costs. If it's not clear, ask.

Tip or gratuity

A tip is typically an extra amount you choose to leave. On many payment terminals this appears as preset percentages.

If you see "gratuity included" on the receipt, your base tip may already be covered.

3-step receipt check

  1. Check line items for service fee, hospitality fee, or auto gratuity.
  2. Check subtotal math to confirm what percentage was applied.
  3. Then decide whether any extra tip is actually warranted.

Pro tip for travelers and groups

Large-party checks and tourist-heavy areas often include automatic gratuity, but payment terminals may still ask again. Review the receipt before confirming.

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